Shell faces fresh criticism over Niger Delta environmental record

New report urges oil giant to end gas flaring and upgrade ageing infrastructure

Shell has today faced further criticism over its its environmental record in the Niger Delta with the release of a new report arguing that the company could and should take action to limit its impact on the region.

The report, coordinated by the Ecumenical Council for Corporate Responsibility, comprises five case studies carried out by NGOs operating in Nigeria, each of which levels fresh criticism at Shell's activities in the country.

The report recommends Shell stop gas flaring in the region as a matter of urgency, prioritising flares closest to communities, and if necessary halting production while flares are eliminated.

Gas flaring is the practice of burning off natural gas that rises to the surface as oil is sourced from under the ground, and is widely blamed for high levels of carbon emissions and local air and water pollution. According to Friends of the Earth, the practice has endangered human health, harmed local ecosystems, emitted huge quantities of greenhouse gases, and is in violation of Nigerian law.

Shell has repeatedly said it will phase out flaring in Nigeria and has faced court orders insisting that it stop, but is yet to bring an end to an activity that environmental groups claim is the largest source of carbon emissions in Sub-Saharan Africa.

The report also recommends that Shell improves its ageing infrastructure in the area, makes sure local people have access to clean drinking water, does more to clean up oil pollution, and improves dialogue with local people.

"The case studies reveal a consistent thread of concerns," the report states. "These include a continuing failure by Shell to operate in the Niger Delta fully according to robust international social and environmental standards, severe pollution of air, land and water, inadequate inclusion of communities in decisions affecting their lives… short-termism and lack of vision."

The ECCR acknowledges that responsibility for improving the lives of people in the area lies largely with the Nigerian government, and notes that Shell has made some efforts in recent years to limit its impact on the area, while creating jobs and training opportunities, and undertaking community development work.

However it adds: "The prevailing civil society view in the Niger Delta and beyond is that currently and cumulatively the benefits of the oil industry’s presence are far outweighed by the negative consequences."

The ECCR provided Shell with the report in draft form and invited it to comment.

In response Shell said that the report is not a sufficiently complete or balanced assessment of its activities and argued that "the primary and overriding authority and responsibility" for what takes place in the Niger Delta rests with the state.

The company also commented that the text makes "many unsubstantiated claims" , though it acknowledged "a convergence of ideas and themes" and said it had already embraced some of the report's recommendations.

Responding to further enquiries from BusinessGreen.com the firm said the decision to stop gas flaring would mean halting production and could only be taken by the Nigerian government.

Shell also claimed it had spent $3bn on a plan to stop gas flaring worldwide - though the scheme is currently stalled because of "lack of funding and security".

The report is the latest in a long line of studies criticising Shell's involvement in the Niger Delta. The company has also faced legal action and last year reached a $15.5m (£9.8m) out-of-court settlement with relatives of a group of activists who were arrested and executed by the Nigerian government after protesting against the development of the delta.

In related news, UK-based NGO Platform has today alleged that Tullow Oil has signed an agreement with the Ugandan government that will allow it to flare gas at its operations in the country.

The NGO released a report that found that under the deal oil flaring will be allowed with the consent of the government and that "consent shall not be unreasonably withheld or delayed".

The report, entitled Cursed Contracts: Uganda's Oil Agreements Put Profit Before People, also found that the deal provided few safeguards to ensure any environmental clean-up costs are adequately met by the company.

"Urgent changes should be made to the contracts, legislation and regulatory regime covering oil to achieve a measure of environmental protection, to minimise economic distortion through revenue flows and to capture a more appropriate share of the revenues," the report concludes.